Power‑capex stocks that had surged on expectations of a data‑centre driven power‑demand boom in 2026 saw a sharp correction over the last two trading sessions. Shares of GE Vernova T&D India, CG Power, Hitachi Energy and TD Power Systems dropped between 12% and 16% as investors grew wary of the broader artificial‑intelligence hype that has been inflating valuations across technology‑linked sectors. The rally earlier this year was largely speculative, betting that AI‑driven cloud and edge computing would lift Indian electricity consumption.
5%, while the broader Sensex slipped marginally, reflecting the sector‑specific shock rather than a systemic market weakness. Retail investors who had added these stocks on the back of the data‑centre story now face a sudden erosion of paper gains, highlighting the risk of chasing trend‑driven narratives without a clear earnings outlook. Going forward, analysts caution that the AI‑related optimism may remain volatile until clear policy guidance and concrete project pipelines emerge.
For the average Indian investor, the prudent approach is to reassess exposure, focus on companies with solid order books and balanced balance sheets, and keep a diversified portfolio to weather sector‑specific swings. Monitoring the Nifty Power’s next moves and any policy signals on renewable and grid upgrades will be key to navigating the coming weeks.